Reinforcing IBC

More insolvency courts is a good starting point

The Ministry of Corporate Affairs’ decision to set up eight special courts under the National Company Law Tribunal (NCLT) to deal specifically with insolvency cases should be welcomed. The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, remains the best bet for resolving the humongous bad debt problem, which has thrown Indian banking and business into a state of limbo. The NCLT is the backbone of this insolvency resolution process but, in the manner of similar judicial dispensations, has chronically overworked. To date, according to the data furnished by the Insolvency and Bankruptcy Board of India (IBBI),